PRINCIPAL COMMISSIONER OF INCOME TAX vs. HIMANSHU GOYAL, NAWAGAON ROAD

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TAXC/96/2024HC ChhattisgarhCGHC01010511202418 November 2024Author: HON'BLE SHRI JUSTICE SANJAY K. AGRAWAL,HON'BLE SHRI JUSTICE RADHAKISHAN AGRAWAL4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the submission made by the learned counsel for the appellant (Revenue) is fair and reasonable. The Court noted that the monetary limit for filing appeals before the High Court has been revised to Rs. 2 Crores by the circular dated 17.09.2024. As the monetary limit (tax liability) in the present case is less than Rs. 2 Crores, the Court, in light of paragraph 5 of the aforesaid circular dated 17.09.2024, disposed of the instant Tax Case finally as withdrawn. The circular explicitly states that it shall apply to SLPs/appeals pending before High Courts, which may accordingly be withdrawn. The Court did not decide any substantive issue on merits.

What were the facts?

The applicant, Principal Commissioner of Income Tax, Raipur - 1, filed an appeal before the High Court of Chhattisgarh at Bilaspur against an order concerning assessee Himanshu Goyal for Assessment Year 2012-13. The appeal was filed by the Revenue. The respondent, Himanshu Goyal, was not represented. The Revenue's counsel submitted that a new circular dated 17.09.2024 issued by the Government of India, Ministry of Finance, has enhanced the monetary limit for filing Income Tax Appeals before the High Court to Rs. 2 Crores. The tax liability in the present case is stated to be less than this enhanced limit. Therefore, the Revenue requested that the present appeal be disposed of finally in light of this circular.

What were the issues?

1. Whether the present appeal, filed by the Revenue, should be disposed of as withdrawn in light of the revised monetary limits for filing appeals before the High Court as per the circular dated 17.09.2024, given that the tax effect is below the enhanced limit? Assessee's Contentions: None recorded. Revenue's Contentions: The Revenue contended that the Government of India, Ministry of Finance, has issued a circular dated 17.09.2024, which enhances the monetary limit for filing Income Tax Appeals before the High Court to Rs. 2 Crores. Since the tax liability in the present case is less than Rs. 2 Crores, the appeal should be disposed of finally in accordance with this circular.

Which sections of the Income-tax Act were involved?

Section 268A

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2024:CGHC:44944-DB

NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 96 of 2024 Principal Commissioner of Income Tax, Raipur - 1, Raipur (C.G.)

... Applicant versus Himanshu Goyal, Nawagaon Road Dhamtari, 793773 (C.G.), Pan - AGTPG1746Q, A.Y. - 2012-13 ... Respondent

For Applicant : Mr. Amit Chaudhari, Advocate with Mr. Vijay Chawla, Advocate. For Respondent : None. Hon'ble Shri

Justice Sanjay K. Agrawal

Hon'ble Shri Justice Radhakishan Agrawal Judgment on Board 19.11.2024 Sanjay K. Agrawal, J. SAURABH YADAV SAURABH YADAV Date: 2024.11.19 16:31:00 +0530

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1.

When the case is taken up for hearing, learned counsel for the appellant would submit that the Government of India, Ministry of Finance has issued a new circular dated 17.09.2024, in which monetary limits for filing Income Tax Appeals by the department before the High Court has been enhanced to Rs.2 Crores, whereas in the present case the tax liability of assess is less than Rs. 2 Crore. Therefore, in light of aforesaid circular dated 17.09.2024, the present appeal may be disposed of finally.

2.

The said prayer appears to be fair and reasonable.

3.

For ready reference, relevant paragraphs of said circular dated 17.09.2024 is quoted herein-below:

“1. Reference is invited to Circular No. 5/2024 (F.No.279/Misc.142/2007-ITJ(Pt))dated 15.03.2024 of Central Board of Direct Taxes (the 'Board') vide which monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLP/appeals before Supreme Court have been specified. Further, exceptions to the monetary limits were also specified vide paras 3.1 and 3.2 of the said Circular.

2.

As a step towards management of litigation, it has been decided by the Board to revise the monetary limits

3 / 4 for filing of appeals in Income-tax cases as stated in Para 4.1 of the aforementioned Circular as follows:- S. No. Appeals/SLPs in Income-Tax matters Monetary Limit (Tax effect in Rs.)

1.

Before Income Tax Appellate Tribunal 60 lakh

2.

Before High Court 2 crore 2 crore

3.

Before Supreme Court 5 core

3.

Monetary limits given in paragraph 2 above with regard to filing appeal/SLP shall be applicable to all cases including those relating to TDS/TCS under the Income-tax Act, 1961 with exceptions as per paras 3.1 and 3.2 of Circular No 5/2024 dated 15.03.2024, where the decision to appeal/file SLP shall be taken on merits, without regard to the tax effect and the monetary limits.

4.

It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case. The officers concerned shall keep in mind the overall objective of reducing unnecessary litigation and providing certainty to taxpayers on their Income-tax assessments while taking a decision regarding filing an appeal.

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5.

The modifications shall come into effect from the date of issue of this Circular. This Circular will apply to SLPs/appeals to be filed henceforth in SC/HCs/Tribunal. It shall also apply to the SLPs/ appeals pending before Supreme Court/High Courts/Tribunal, which may accordingly be withdrawn.

6.

The above may be brought to the notice of all concerned.

7.

This issues under section 268A of the Income-tax Act, 1961. 8. Hindi version will follow. ”

4.

In view aforesaid submission of learned counsel for the appellant where monetary limit (tax liability) in the present case is less than Rs.2 Crores, therefore, in light of aforesaid circular (Para-5) dated 17.09.2024, the instant Tax Case stands disposed of finally as withdrawn. (Sanjay K. Agrawal) (Radhakishan Agrawal) JUDGE JUDGE Saurabh

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